Latest Update vs. Hacked: Comparing iPhones
Well, now that all of that business is over with, let's take a comparative look at the before and after of the v1.1.1 firmware update from Apple. When it made it's debut, the iPhone was centered around three features; iPod, Phone, and internet communicator. The many many independent developers out there added to that list, but Apple replaces those with their own additions. Let's compare.
We started with a revolutionary device fresh from Apple. It was an iPod, phone, and web browser with mail and a few key widgets. It could also view photos stored on the device and videos on youtube. It wasn't bad, but it turned into something better. The hackers made a couple additions to Apple's list of features, many of which were productivity oriented. Then the update brought the iPhone's feature list back down to the original ones, and a few extras. 9to5Mac compiled a list of comparisons, which Wired Blogs then turned into this handy graphic:

As you can see, there is quite a difference in the number of apps for an iPhone running v1.0.2 that has been hacked than one running the official firmware version of v1.1.1, although this chart does leave out the original SMS, Calendar, Photo browser, YouTube, Stocks widget, Google Maps, Weather widget, calculator, note pad, phone, mail app, web browser, iPod, and Clock. Let's not forget the clock...
so, if you count all of these up, this puts the feature ratio at 27+ to 15, in favor of the hacked version. For those of you wondering what it feels like to see a hacked iPhone turn into an un-hacked one, I imageine it's something like this:

A big difference, no?
However, there may be a reason for all of this. With all of these apps comes a certain degree of instability, which was hinted at a while ago. If this continued, it might have snowballed to the point where repairing devices at Apple's retail stores might become a big headache for the techs, and if the techs can't repair it, then Apple can't very well warranty it. We'll have to wait and see what Apple as to say for themselves.

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or just make the thing less buggy so installing software on it doesnt cause complications
One reason of course can be that the stability of the system can be affected by this software. But, Apple managed the problem on their computers so it cannot be difficult to do the same for the Iphone can it?
I really believe that the answer lies in Apple's strategy towards the future of the Iphone. The distribution on the European continent is to be unrolled in 2008.
The financial implications for Apple (hardware sales AND revenues on data transmission) are huge and the reasons behind their defensive attitude are therefore purely financial.
But endusers are not defenseless. Apple's strategy needs to be broken by law. Several countries in Europe just do not accept this kind of monopoly building and cartel agreements. Consumer organizations will attack Apple's sales policy and consumers will develop ways to get around the " i will push it through your throat" sales policy.
It would be wise if Apple turns around halfway before failing at the end.
The phone is a new platform. Like OS X it will evolve fast to become mature. While its great now, we thought 10.2 was great compared to 10.0 or 10.1. Now 10.4 is MUCH more mature, stable and overall better than 10.2. And from the looks of it, 10.5 will be when OS X has reached maturity although 10.4 is damn close. Also notice how Apple (announced) it has slowed OS releases. So lots of close releases dates to tune and grow the OS and as it evolves less updates.
I see the same with the iPhone. The 3-1(1.1.1.) update was a big over-haul. They added some great new features. The double-click home button, awesome! The double-tap space bar, awesome! Overall it seems faster so we can assume a lot of under the hood stuff was done too. You can tell they listened to customer feed-back. In the end I really believe Apple had no intent to break third party apps, but it just HAD to happen. Think of all the stuff that gets broken when updating to new versions of OS X? I am sure we will see many more updates over the next few months.
I would have to say Apple is still trying to tune iPhoneOS and when they are comfortable with it they will open it to third party apps in a limited way.
Think about it. How many of these apps that we have installed would you be willing to pay for? For me, lots. Maybe $2 or more.
Now think of this. How will you install them and buy them? iTunes! Its on the iPhone now! Shop, buy and install over WiFi. Apple has supplied the PERFECT delivery system that is proven and already used for games and it would be a way to get "certified" third party apps.
I bet that in time third party apps will be available in iTunes for AppleTouch products.
last of secret agents
What I said in the other post -- in re the upgrade -- was this:
"It seems to me that with this upgrade that Apple is trying to prevent two things:
1) Violating the terms of their agreement with AT&T, which doubtlessly stipulates that Apple take every effort to prevent any abridgement of the software which might enable people to switch carriers. Hence, BOOM, THUD....BRICK if you switched. That might even be a contractual stipulation?
2) Any infringment of their incredibly lucrative ITunes music franchise. Hacking ringtones onto the phone might seem like a benign thing to older Iphone users like myself (41) who just want to hear the damn thing ring so we can answer it. But if you look at the combined economics of music and ringtone downloads, you will see an almost shocking source of revenue. As someone pointed out, I am sure Apple welcomes certain third-party apps for the iPhone, but not if said aps start cutting into this massively profitable domain. I for one don't use Itunes anymore, I just can't take having to decode the songs before burning them (otherwise you risk them not appearing them on a CD, and who can keep track of the "five" devices you've got this song or that one on?), so their crazy, big-brother-y overprotectiveness has already cost them a customer and at least $1000 in song fees. I get them from the Russian music sites like GoMusic.ru instead (for a fifth of the price, often a broader selection of weird mixes, and no Turtle-Wax copy-protect coating)
Why else would Apple try to buttress their hold on this market by incorporating a (very lame) wifi link to Itunes with this upgrade -- even if the link is a lame one?"
So -- yes, the Iphone is totally a platform to build a near-monopoly -- and a pretty infectious one. Are we shocked that Apple is taking a bit from the Microsoft fruit?